Chapter 75: Appraisal of Taxable Property

The selectmen shall appraise open space land pursuant to RSA 79-A:5, open space land with conservation restrictions pursuant to RSA 79-B:3, land with discretionary easements pursuant to RSA 79-C:7, residences on commercial or industrial zoned land pursuant to RSA 75:11, earth and excavations pursuant to RSA 72-B, land classified as land under qualifying farm structures pursuant to RSA 79-F, buildings and land appraised under RSA 79-G as qualifying historic buildings, qualifying chartered public school property appraised under RSA 79-H, residential rental property subject to a housing covenant under the low-income housing tax credit program pursuant to RSA 75:1-a, renewable generation facility property subject to a voluntary payment in lieu of taxes agreement under RSA 72:74 as determined under said agreement, combined heat and power agricultural facility property subject to a voluntary payment in lieu of taxes agreement under RSA 72:74-a as determined under said agreement, telecommunications poles and conduits pursuant to RSA 72:8-c, electric, gas, and water utility company distribution assets pursuant to RSA 72:8-d, and all other taxable property at its market value.Market valuemeans the property's full and true value as the same would be appraised in payment of a just debt due from a solvent debtor. The selectmen shall receive and consider all evidence that may be submitted to them relative to the value of property, the value of which cannot be determined by personal examination.

The appraisal for property tax purposes on multifamily residential rental property which is governed by section 42 of the Internal Revenue Code and which is subject to a recorded housing subsidy covenant that restricts tenant eligibility and rents shall, upon the affirmative request of the taxpayer, be determined under this section. A copy of the recorded land use restriction required by section 42 of the Internal Revenue Code or other low income rental use restriction covenant required by the New Hampshire housing finance authority, is sufficient proof that the property is eligible for assessment under this section.

[Paragraph I effective until January 1, 2027; see also paragraph I set out below.]

I. To make an election for an appraisal of property subject to a housing covenant under the low-income housing tax credit program, the taxpayer shall, by October 1 preceding the tax year for which the election is sought, provide written notice to the municipality of the taxpayer's election to be assessed under this section, using a form prepared by the department of revenue administration. A property that as of April 1 of the tax year is under construction shall not be eligible to apply for assessment under this section.

[Paragraph I effective January 1, 2027; see also paragraph I set out above.]

I. To make an election for an appraisal of property subject to a housing covenant under the low-income housing tax credit program, the taxpayer shall, on or before April 15, provide written notice to the municipality of the taxpayer's election to be assessed under this section, using a form prepared by the department of revenue administration. A property that as of April 1 of the tax year is under construction shall not be eligible to apply for assessment under this section.

II. When an election is made, the property shall be assessed under this section for the next 10 tax years, provided the property remains subject to the housing covenant under the low-income housing tax credit program. A property subject to assessment under this section shall not be granted property tax exemption under RSA 72:23.

III. A taxpayer who makes an election under this section shall, by April 15 of each applicable tax year, provide the assessor with the relevant information described in this section, using a form prepared by the department of revenue administration.

IV. Financial information that is required from the taxpayer under this section shall be the audited financial statements from the prior calendar year as prepared by a third-party certified public accountant. For properties with financial data for part of the prior calendar year, the assessor shall use the partial data and the projected operating budget for the first full year of operations as provided by the New Hampshire housing finance authority to extrapolate a full year's estimated operation financials.

V. A taxpayer making an election under this section shall be liable for taxes on the property in an amount equal to 10 percent of the actual rental income and other income.

VI. The assessed value shall be calculated in a manner consistent with this section.

VII. The assessed valuation of residential rental property subject to a housing covenant under the low-income housing tax credit program shall not take into consideration the value of intangible assets including, but not limited to, government subsidies or grants, below market rate mortgage financing, and tax credits where such subsidies are used to offset project development expenses in order to allow for restricted rents. The assessed valuation shall not take into consideration the actual cost of acquisition or construction of the project.

VIII. In this section, "other income" means income that is attributable to the real estate and is ordinary and recurring, including laundry or vending income. Interest on restricted reserve funds shall be considered other income. For properties with nonresidential space that is or can be rented as commercial space to third parties, market rent, considering any legal, market, or covenant restrictions, shall be attributed to such space and shall be considered as other income. Common area space within a property that are used primarily to benefit the property's residents or to provide services to the property's residents shall not be separately assessed and no income shall be imputed to such space.

Whenever it shall appear to the selectmen that several persons are owners of distinct interests in the same real estate, or that one person is owner of land and another is the owner of any building, timber, or wood standing thereon, or ores or minerals therein, they may, upon request, appraise such interests and assess the same to the owners thereof separately, except as provided in RSA 75:3.

Whenever a person owns or erects a building on land of another both may be taxed together as real estate to the owner of the land, provided a selectman or assessor, before or when taking the inventory, gives notice in writing to the landowner that such building is to be taxed to the landowner as real estate. An affidavit by the selectman or assessor giving the notice that such notice was given shall be evidence of the fact. The owner of the land shall have a lien on such building for the payment of the tax.

The selectmen shall set down in their inventory, in separate columns, the value of improved and unimproved land, of buildings, of factories, of public utility property, of manufactured housing and of all other classes of taxable property.

In making the inventory, the selectmen shall set down in the column of improved and unimproved land all buildings situate on such land and owned by the owners thereof, except such buildings as are specially designated in RSA 75:4.

The selectmen shall make such deductions from the appraised value of the property of insane persons as they shall think just and reasonable, whenever it shall appear that the income of their estates is not sufficient to support them.

The selectmen and assessors shall take and subscribe upon the copies or original inventories and assessments of both resident and nonresident taxes, furnished by them to the town clerks in their respective towns, to be recorded in the clerk's records, the following oath, which may be subscribed before any justice of the peace or notary public: We, the selectmen and assessors of __________ , certify under the penalty of perjury that in making the inventory for the purpose of assessing the foregoing taxes all taxable property was appraised to the best of our knowledge and belief at its full value, in accordance with state appraisal standards.

I. Annually, and in accordance with state assessing guidelines, the assessors and selectmen shall adjust assessments to reflect changes and to correct any errors in existing appraisals so that all assessments are reasonably proportional within that municipality. All adjusted assessments shall be included in the inventory of that municipality and shall be sworn to in accordance with RSA 75:7.

II. Assessors and selectmen shall consider adjusting assessments for any properties that:

(a) They know or believe have had a material physical change;

(b) Changed in ownership;

(c) Have undergone zoning changes;

(d) Have undergone changes to exemptions, credits or abatements;

(e) Have undergone subdivision, boundary line adjustments, or mergers; or

(f) Have undergone other changes affecting value.

The assessors and/or selectmen shall reappraise all real estate within the municipality so that the assessments are at full and true value at least as often as every fifth year, beginning with the later of either of the following:

I. The first year a municipality's assessments were reviewed by the commissioner of the department of revenue administration pursuant to RSA 21-J:3, XXVI and the municipality's assessments were determined to be in accordance with RSA 75:1; or

II. The municipality conducted a full revaluation monitored by the department of revenue administration pursuant to RSA 21-J:11, II, provided that the full revaluation was effective on or after April 1, 1999.

Except when assessing real estate under RSA 75:8-a, any municipality with a population over 10,000 as determined pursuant to RSA 78-A:25 intending to appraise real estate annually at market value, as defined in RSA 75:1, shall authorize such annual appraisal by a majority vote of the governing body. The governing body shall hold 2 public hearings regarding the annual appraisal process at least 15 days, but not more than 60 days, prior to the governing body's authorization vote. Any municipality with a population over 10,000 as determined pursuant to RSA 78-A:25 annually appraising real estate at market value shall provide notification of changes to the assessed valuation at least 45 days prior to the issuance of the final tax bill. Such notice shall be by public notice in a local newspaper of general circulation, by public notice on the municipalities' main website or any social media accounts utilized by the municipality, and public notice posted in the 2 places where the municipality regularly posts notices of its governing body meetings, or by any other means deemed appropriate by the governing body.

Any municipality that conducts a reappraisal of property pursuant to RSA 75:8-a shall provide notification of changes to the assessed valuation at least 45 days prior to the issuance of the final tax bill. Such notice shall be by public notice in a local newspaper of general circulation, by public notice on the municipalities' main website and any social media accounts utilized by the municipality, by public notice posted in the 2 places where the municipality regularly posts notices of its governing body meetings, or by any other means deemed appropriate by the governing body.

Whenever it shall appear to the selectmen or assessors that 2 or more tracts of land which do not adjoin or are situated so as to become separate estates have the same owner, they shall appraise and describe each tract separately and cause such appraisal and description to appear in their inventory. In determining whether or not contiguous tracts are separate estates, the selectmen or assessors shall give due regard to whether the tracts can legally be transferred separately under the provisions of the subdivision laws including RSA 676:18, RSA 674:37-a, and RSA 674:39-a.

In this subdivision:

I. "Industrial or commercial zone" means any district designated by a local legislative body in a zoning ordinance in which business or industry are permitted uses of property.

II. "Residence" means the real estate which a person owns and occupies as the person's principal place of abode, and for no other purpose, together with any land or buildings appurtenant thereto, including manufactured housing if used for such purpose.

I. The owner of record of any residence located in an industrial or commercial zone may apply on or before April 15 of any year to the selectmen or assessors, on a form prepared by the selectmen or assessors, for a special appraisal of the residence, based upon its value at its current use as a residence. After the initial application, reapplication shall not be required. If any owner shall satisfy the assessing officials that the owner was prevented by accident, mistake or misfortune from filing said application on or before April 15, the officials may receive the application at a later date and classify the residence under this section; but no such application shall be received after the local tax rate has been approved by the commissioner of revenue administration for that year.

II. The assessing officials shall notify the applicant on a form provided by the commissioner of revenue administration no later than July 1, or within 15 days if the application is filed after July 1, of their decision to classify or refusal to classify the applicant's residence by delivery of such notification to the applicant in person or by mailing such notification to the applicant's last and usual place of abode.

III. Prior to July 1 each year, the assessing officials shall determine if previously classified residences have been reapplied or have undergone a change in use. A list of all classified residences and their owners in each town or city shall be filed by the respective assessing officials each year. Such list shall be part of the inventory and subject to inspection as provided in RSA 76:7.

IV. The commissioner shall execute such other forms, procedures, and regulations as are needed to assure a fair opportunity for owners to qualify under this chapter and to assure compliance of uses on classified property.

V. [Repealed.]

VI. The selectmen or assessors shall make such a special appraisal of any eligible residence whose owner correctly applies in accordance with paragraph I, and shall assess the tax for that year on that special appraisal.

VII. [Repealed.]

In computing the total value of all property in a city or town, any residence which is appraised at current use value under the provisions of this subdivision shall, for all purposes including but not limited to the purposes of RSA 33:4-b, be inventoried by the town or city at its current use value.

In computing the equalized value of a city or town, the department of revenue administration shall use the current use value for any residence which is so appraised under this subdivision.

I. If the assessing officials deny in whole or in part any application for classification as an eligible residence, the applicant, having complied with the requirements of RSA 75:11, I, may, on or before 30 days after any such action by the assessing officials, in writing and upon a payment to the board of tax and land appeals of a $40 filing fee, apply to such board for a review of the action of the assessing officials.

II. The board of tax and land appeals shall investigate the matter and shall hold a hearing if requested as herein provided. The board of tax and land appeals shall make such order thereon as justice requires and such order shall be enforceable as provided hereafter.

III. Upon receipt of an application under the provisions of paragraph I, the board of tax and land appeals shall give notice in writing to the affected town or city of the receipt of the application by mailing such notice to the town or city clerk thereof by certified mail. Such town or city may request in writing a hearing on such application within 30 days after the mailing of such notice and not thereafter. If a hearing is requested by a town or city, the board of tax and land appeals shall, not less than 30 days prior to the date of hearing upon such application, give notice of the time and place of such hearing to the applicant and the town or city in writing. Nothing contained herein shall be construed to limit the rights of taxpayers to a hearing before the board of tax and land appeals.

IV. The applicant and the town or city shall be entitled to appear by counsel, may present evidence to the board of tax and land appeals and may subpoena witnesses. Either party may request that a stenographic record be kept of the hearing. Any investigative report filed by the staff of the board of tax and land appeals shall be made a part of such record.

V. In such hearing, the board of tax and land appeals shall not be bound by the technical rules of evidence.

VI. Either party aggrieved by the decision of the board of tax and land appeals may appeal pursuant to the provisions of RSA 71-B:12. For the purposes of such appeal, the findings of fact by said board shall be final and any such appeal shall be limited to questions of law. An election by an applicant to appeal in accordance with this paragraph shall be deemed a waiver of any right to petition the superior court in accordance with RSA 75:15.

VII. A copy of an order of classification ordered by the board of tax and land appeals, attested as such by the chairperson of the board, if no appeal is taken under this section, may be filed in the superior court for the county or in the Merrimack county superior court at the option of the board. Thereafter, such order may be enforced as a final judgment of the superior court.

If the assessing officials deny in whole or in part any application for classification as an eligible residence, the applicant, having complied with the requirements of RSA 75:11, I, may, within 6 months after notice of denial or classification, apply by petition to the superior court of the county, which shall make such order thereon as justice requires. Any appeal to the superior court under this section shall be in lieu of an appeal to the board of tax and land appeals pursuant to RSA 75:14.

The board of tax and land appeals may order a reclassification or a denial of a classification of any residence classified under the provisions of this subdivision:

I. When a specific written complaint is filed with it by a landowner, within 90 days of being listed as provided by RSA 75:11, III, that a particular residence not owned by the landowner has been fraudulently, improperly, or illegally so classified, the complainant shall pay to the board of tax and land appeals for each specific particular residence complained of a $40 fee. The board shall send notice by certified mail to the owner against whose property the complaint is made; or

II. When it comes to the attention of the board of tax and land appeals from any source, except as provided in paragraph I, that a particular residence has been fraudulently, improperly or illegally so classified.

When ordered to make a classification, reclassification or denial of classification pursuant to action of the board of tax and land appeals under RSA 75, the assessing official shall make it within such time as the board orders. If the classification, reclassification or denial of classification is not made in conformity with the order, is not made to the satisfaction of the board, or is not made within such time as the board has directed, then any order the board makes shall, at the expiration of such time, have full force and effect as if it were made by the assessing officials.

Neglect or failure on the part of any assessing official to comply with an order of the board of tax and land appeals issued pursuant to RSA 75:14 or an order of the superior court made pursuant to RSA 75:15 shall be deemed willful neglect of duty, and they shall be subject to the penalties provided by law in such cases.

Any person who shall make, or cause to be made any false or fraudulent application, return or statement with intent to defraud the towns or cities of any real property taxes which would be levied but for the provisions of this subdivision shall be guilty of a violation.